(b) Calculate the following ratios for McKie Ltd:

i. Current ratio

ii. Gearing ratio

iii. Debt to Equity ratio

iv. Return on capital employed

v. Return on shareholders equity

1. marks)

(c) Write a report to management on the Liquidity, Solvency, and Profitability of McKie Ltd

relative to the industrys performance below:

Current ratio	1.5 : 1
Gearing ratio	35%
Debt to Equity	0.45 : 1
Return on capital employed	35%
Return on shareholders' equity	40%

(10 marks)

(d) Internally generated Goodwill can be recognized in the financial statements under certain

conditions. Please discuss the preceding statement making reference to any relevant

accounting standard. (5 marks)